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4.12 HRSR 02-06-2017Request for Action To Item Number Housing and Redevelopment Authority 4.12 Agenda Section Meeting Date Prepared by Consent A enda February 6, 2017 Amanda Othoudt, EDD Item Description Reviewed by Neighborhood Stabilization Program Satisfaction of Cal Portner, City Administrator Reviewed by Repayment Agreements. Action Requested Approve, by motion, the satisfaction of repayment agreements. Background/Discussion In February of 2009, the HRA was awarded $593,820 in foreclosure recovery funds through the Minnesota Housing Finance Agency (MHFA) for the Neighborhood Stabilization Program (NSP). The NSP funding award was approved for the following neighborhoods; Windsor Oaks, Trout Brook, Park Pointe, and Elk River Station. The grant money was utilized for down payment assistance, purchase, and rehabilitation of abandoned/ foreclosed homes. The assistance provided to the homeowner through the NSP was considered a "special mortgage" although there are no monthly payments due or accrued interest. If the real property is owned for five years, the city agrees to forgive the full amount of the loan and issue the owner a written notice of satisfaction terminating the lien created by the agreement. The following properties with mortgage and repayment agreements through the NSP program have satisfied the requirements. • 17213 Monroe Street, Elk River, MN • 17926 Vance Circle NW, Elk River, MN Financial Impact N/A Attachments ■ Letter to Liberty Title • Satisfaction of Repayment Agreement for 17213 Monroe Street • Satisfaction of Repayment Agreement for 17926 Vance Circle • Repayment Agreement for 17213 Monroe Street • Repayment Agreement for 17926 Vance Circle PV0 w E R E o R Y AA UR 13065 Orono ParWac Elk Ricer. AIN 55330 January 5, 2017 Ms. Gretchen Hoeft Liberty Title 12301 Central Ave NE, Suite 202 Blaine, MN 55434 Dear Ms. Hoeft, The Loan Repayment Agreement dated June 23, 2010, filed July 20, 2010 as Document No. 716065, executed by Jason Espedal, a single person and Megan E. Wissbaum, a single person, to the City of Elk River in the original principal amount of $10,000.00 has been fully paid and satisfied. A signed Satisfaction of the Loan & Repayment Agreement will be executed at the next, regularly scheduled meeting of the City of Elk River Housing and Redevelopment Authority on February 6, 2017 and mailed to your office for recording. Please let me know if I can be of any further assistance. Sincerely, A- anda Othoudt, EDFP Economic Development Director City of Elk River Enclosure Phone: 763.635.1000 Pax: 763.635. logo \aiw.F.IkRieer6lNgm POWEERE0 0Y 1112ATURE SATISFACTION OF REPAYMENT AGREEMENT DATE: THAT CERTAIN GRANT AGREEMENT owned by the undersigned, dated the 23th day of June, _ 2010, executed by Jason Espedal, a single person and Megan E. Wissbaum, a single person, as Mortgagor, to City of Elk River, as Mortgagee and filed for record the 20th day of July, 2010, as Document Number 716065, in the Office of the County Recorder of Sherburne County, Minnesota, is, with the indebtedness thereby secured, fully paid and satisfied. City of Elk River By: Its: STATE OF MINNESOTA ss COUNTY OF ) The foregoing instrument was acknowledged before me this By, , the Elk River. NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) THIS INSTRUMENT WAS DRAFTED BY: City of Elk River 13065 Orono Parkway Elk River, MN 55330 Notary Public day of , 20 of the City of TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: Unaffected SATISFACTION OF REPAYMENT AGREEMENT DATE: THAT CERTAIN GRANT AGREEMENT owned by the undersigned, dated the 11th day of June, _ 2010, executed by Taara Sue Amrine, a single person as Mortgagor, to City of Elk River, as Mortgagee and filed for record the 29th day of June, 2010, as Document Number 715049, in the Office of the County Recorder of Sherburne County, Minnesota, is, with the indebtedness thereby secured, fully paid and satisfied. City of Elk River By: Its: STATE OF MINNESOTA ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 By, Elk River. NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) THIS INSTRUMENT WAS DRAFTED BY: City of Elk River 13065 Orono Parkway Elk River, MN 55330 the Notary Public of the City of TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: Unaffected EXEMPT FROM REGISTRATION TAX. SHERBURNE COUNTY AUDITORITREASURER Office of the County Recorder Sherburne County, MN Doc. No. 716066 Certified filed andfor recorded on 7-20-2010 at 02:00 le Ashe, County Recorder �E2 Deputy Fee: $ 48.00 REGIS TITLE LLC 2230 W CTY RD C z ROSEVILLE MN 55113 CITY OF ELK RIVER NEIGHBORHOOD STABILIZATION PROGRAM REPAYMENT AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this 23rd day of June, 2010 by and between Jason Espedal, a single person and Megan E. Wissbaum, a single person (hereinafter referred to as "Owner"), and the City of Elk River, having its principal office at 13065 Orono Parkway, Elk River, MN 55330, (hereinafter referred to as the "City"). RECITALS: A. City is a party to a "Grant Agreement" with the Minnesota Housing Finance Agency pursuant to which City can make certain funds available to homeowners. B. In accordance with the Grant Agreement, City is granting to Owner, a deferred payment loan (hereinafter referred as "Loan") relating to the real estate hereinafter described, to be used for the purpose of down payment assistance, in the amount of Ten Thousand and no/100-----dollars ($10,000.00) (the "Loan Amount"). C. As a condition to making the Loan to Owner, City is requiring that Owner enter into this Agreement. NOW, THEREFORE, in consideration of the Recitals, the Loan, the covenants contained herein and other good and valuable consideration, the parties do hereby agree as follows: Owner hereby acknowledges receipt of the Loan, and agrees to the terms of repayment provided in this Agreement. 2. City agrees to forgive the full amount of the Loan if (i) the Real Property (as hereinafter defined) does not cease to be Owner's principal residence, and (ii) Owner does not sell, transfer or otherwise convey the Real Property, whether voluntarily or involuntarily (including by virtue of death), on or before June 23, 2015 (the "Forgiveness Date"). In the event that Owner satisfies the terms for forgiveness of the Loan as provided in this paragraph (the "Loan Forgiveness Requirements"), City will issue to Owner a written satisfaction terminating the lien created by this Agreement. 3. If Owner fails to meet the Loan Forgiveness Requirements, Owner covenants and agrees with City to repay the Loan in the amount determined as follows: a. If the failure to meet the Loan Forgiveness Requirements occurs within one (1) year after the date of the Loan, Owner shall repay the full Loan Amount to City. b. If the failure to meet the Loan Forgiveness Requirements occurs after the first year, but before the Forgiveness Date, Owner shall repay an amount determined by deducting 20 % from the Loan Amount for each full year elapsed since the date of the Loan. The amounts so deducted shall be deemed forgiven. C. in the case of Owner's sale of the Real Property before the Forgiveness Date, the amount of repayment required under this Agreement shall not exceed the "Net Proceeds" of such sale. For purposes hereof, "Net Proceeds" shall mean the sales price of the Real Property minus (i) loan repayment (other than the Loan described in this Agreement), and (ii) closing costs. Any repayment required under this paragraph shall be made to City no later than thirty (30) days following the failure to meet the Loan Forgiveness Requirements, or on such later date or dates as the City, in its sole discretion, may designate. 4. As security for owner's obligation of repayment, and subject to the terms and conditions of this Agreement, Owner by flus Agreement hereby grants to City a lien on the real estate hereinafter described (the "Real Estate") in the Loan Amount (as the same may have been reduced in accordance with this Agreement) plus all amounts of the collection of same including reasonable attorneys' fees, court costs, etc. The Real Estate is situated in the City of Elk River, Sherburne County, Minnesota, and is legally described as: Unit 1403, CIC No. 46, Woods at Elk River Station, Sherburne County, Minnesota. 5. Promptly after any event that causes Owner to fail to meet the Loan Forgiveness Requirements (or, in the event of a sale by contract or deed, at least ten (10) days prior to the date of such sale), Owner or his/her heirs, executors, or representatives, shall give City notice thereof. b. In the event Owner or his/her heirs, executors or representatives shall fail or refuse to make a required repayment within the time required by this Agreement, City may foreclose the lien granted by this Agreement in the Real Property in the manner provided by law. 7. This agreement shall run with the Real Estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. In testimony whereof, the parties have executed this agreement as of the day and year first written above. Owner (s) `fV Jason espedal Megan E. Wissbaum State of Minnesota ) County o ) On this RL day of June 2010, before me, a notary public within and for the said county, personally appeared Jason Espedal, a single person and Megan E. Wissbaum, a single person to me known to be the person(s) described in and who executed the foregoing instrument and acknowled 'ng that th executed the a as t it free act and deed. Notary pub c 1 �r On this day of , 200_, before me, a notary public within and for the said county, personally appeared to me known to be the person(s) described in and who executed the foregoing instrument and acknowledging that _he executed the same as __.. free act and deed. Notary public Tax statements for the real property described in this instrument should be sent to: Jason Espedal 17213 Monroe Street NW Elk River MN 55330 THIS INSTRUMENT WAS DRAFTED BY RETURN TO: Gray Plant Moody Tri -County Action Program, Inc. Attn: Wade Anderson, Attorney P O Box 683 500 IDS Center, 80 South Eighth Street Waite Park, MN 56387-0683 Minneapolis MN 55402-3796 This instrument is exempt from registration tax under Section 287.06 of Minnesota Statutes. GP2605147 0 EXEMPT FROM REGiSTRATION TAX. SHERBURN AUDITOR/TREASURER ,fes CITY OF ELK RIVER NEIGHBORHOOD STABILIZATION PROGRAM REPAYMENT AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this 11th day of June 2010 by and between Taara Sue Amrine, a single person (hereinafter referred to as "Owner"), and the City of Elk River, having its principal office at 13065 Orono Parkway, Elk River, MN 55330, (hereinafter referred to as the "City"). RECITALS: A. City is a party to a "Grant Agreement" with the Minnesota Housing Finance Agency pursuant to which City can make certain funds available to homeowners. B. In accordance with the Grant Agreement, City is granting to Owner, a deferred payment loan (hereinafter referred as "Loan") relating to the real estate hereinafter described, to be used for the purpose of down payment assistance, in the amount of Ten Thousand and no/100-- dollars ($10,000.00) (the "Loan Amount"). C. As a condition to making the Loan to Owner, City is requiring that Owner enter into this Agreement. NOW, THEREFORE, in consideration of the Recitals, the Loan, the covenants contained herein and other good and valuable consideration, the parties do hereby agree as follows: 1. Owner hereby acknowledges receipt of the Loan, and agrees to the terms of repayment provided in this Agreement. 2. City agrees to forgive the full amount of the Loan if (i) the Real Property (as hereinafter defined) does not cease to be Owner's principal residence, and (ii) Owner does not sell, transfer or otherwise convey the Real Property, whether voluntarily or involuntarily (including by virtue of death), on or before June 11, 2015 (the "Forgiveness Date"). In the event that Owner satisfies the terms for forgiveness of the Loan as provided in this paragraph (the "Loan Forgiveness Requirements"), City will issue to Owner a written satisfaction terminating the lien created by this Agreement. 3. If Owner fails to meet the Loan Forgiveness Requirements, Owner covenants and agrees with City to repay the Loan in the amount determined as follows: a. If the failure to meet the Loan Forgiveness Requirements occurs within one (1) year after the date of the Loan, Owner shall repay the full Loan Amount to City. b. If the failure to meet the Loan Forgiveness Requirements occurs after the first year, but before the Forgiveness Date, Owner shall repay an amount determined by deducting 20% from the Loan Amount for each full year elapsed since the date of the Loan. The amounts so deducted shall be deemed forgiven. C. In the case of Owner's sale of the Real Property before the Forgiveness Date, the amount of repayment required under this Agreement shall not exceed the "Net Proceeds" of such sale. For purposes hereof, "Net Proceeds" shall mean the sales price of the Real Property minus (i) loan repayment (other than the Loan described in this Agreement), and (ii) closing costs. Any repayment required under this paragraph shall be made to City no later than thirty (30) days following the failure to meet the Loan Forgiveness Requirements, or on such later date or dates as the City, in its sole discretion, may designate. 4. As security for owner's obligation of repayment, and subject to the terms and conditions of this Agreement, Owner by this Agreement hereby grants to City a lien on the real estate hereinafter described (the "Real Estate") in the Loan Amount (as the same may have been reduced in accordance with this Agreement) plus all amounts of the collection of same including reasonable attorneys' fees, court costs, etc. The Real Estate is situated in the City of Elk River, Sherburne County, Minnesota, and is legally described as: Unit 105, Common Interest Community No. 34, , Sherburne County, Minnesota, Trout Brook South Condominium 5. Promptly after any event that causes Owner to fail to meet the Loan Forgiveness Requirements (or, in the event of a sale by contract or deed, at least ten (10) days prior to the date of such sale), Owner or his/her heirs, executors, or representatives, shall give City notice thereof. 6. In the event Owner or his/her heirs, executors or representatives shall fail or refuse to make a required repayment within the time required by this Agreement, City may foreclose the lien granted by this Agreement in the Real Property in the manner provided by law. 7. This agreement shall run with the Real Estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. In testimony whereof, the parties have executed this agreement as of the day and year first written above. Owner (s) State of Minnesota County of Sherburne e12 — Taara Sue Amine On this 111 day of June 2010, before me, a notary public within and for the said county, personally appeared Tura Sue Amrine, a single person, to me known to be the person(s) described in and who executed the foregoing instrument and acknowledging that she executed a as her free act and deed. CRAIG W SCli1RN! tary public NOTARY PUBLIC MINNESOTA M CommiselonExpires Jan.31,2018 State of Minnesota County of Sherburne On this day of , 200_, before me, a notary public within and for the said county, personally appeared to me known to be the person(s) described in and who executed the foregoing instrument and acknowledging that _he executed the same as _ free act and deed. Notary public Tax statements for the real property described in this instrument should be sent to: Taara S. Amrine 17926 Vance Circle NW Elk River MN 55330-4695 THIS INSTRUMENT WAS DRAFTED BY RETURN TO: Gray Plant Moody Tri -County Action Program, Inc. Attn: Wade Anderson, Attorney P O Box 683 500 IDS Center, 80 South Eighth Street Waite Park, MN 56387-0683 Minneapolis MN 55402-3796 This instrument is exempt from registration tax under Section 287.06 of Minnesota Statutes. GP:2665147 v3 EXHIBIT "A" UNIT 105, COMMON INTEREST COMMUNITY NO. 34, SHERBURNE COUNTY, MINNESOTA, TROUT BROOK SOUTH CONDOMINIUM Office of the County Recorder Sherburne County, MN Doc. No. 716049 Certified filed and/or recorded on 06-29-2010 at 09;30 e Asha, County Recorder �Y deputy Fee: $ 46.00 Illtll5049lll�